CHAPTER - 01

INTRODUCTION

Our Beginnings

Shriram Finance is the country’s one of the biggest retails NBFC offering credit
solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold
loans, personal and small business loans. We are part of the 49-year-old Shriram
Group, a financial conglomerate that has emerged as a trusted partner in creating
transformative experiences and lasting impressions in customers’ lives.
In November 2022, Shriram Group’s e``ntities – Shriram Transport Finance Company
Limited, Shriram City Union Finance Limited , and Shriram Capital Limited –
merged to form Shriram Finance Limited . As on June 30, 2023, with a network of
2,930 branches and a workforce of 66,343, Shriram Finance has combined Assets
Under Management (AUM) worth ₹ 193,215 crores.
As a leading financial enterprise with a rich business history, Shriram Finance is
founded on inclusion and sustainability, helping us unlock value for generations to
come. Our presence spans across the agrarian heartlands of rural India to its vibrant,
cosmopolitan metros where we set wings to aspirations. At Shriram Finance, we are
committed to meeting our customers at every touchpoint of their financial journey so
that they get to explore unlimited possibilities through us.
Powered by cutting-edge technology, Shriram Finance is a digitally mature financial
institution that reflects the banking needs of the Millennial and Gen Z customers. We
offer priority financial services to those in the unbanked and underbanked sectors,
expanding our innovative product pipeline at every stage of disruption.
Who we are

Shriram is a pioneer in the NBFC Industry with a strong rural presence. The Shriram
Finance Limited is one of the India’s leading NBFCs, with 7.54 Million (as on June
30, 2023) private and corporate customers across India. Shriram’s customers benefit
from a broad range of diverse product portfolio: Fixed Deposits, Commercial Vehicle
Loans, Passenger Vehicle Loans, Construction Equipment Loans, Farm Equipment
Loans, Two-Wheeler Loans, Gold Loans, MSME Finance and Personal Loans.

Our Vision

To be country’s most-preferred financial services destination, delivering

delightful customer experience through empowered employees.

Customer First

We pride ourselves on the perfect understanding of the common person. Our financial
services are tailor-made to perfectly suit customer needs through quality non-banking
financial services. This guiding philosophy of putting people first has brought the
company closer to the grassroots, and we are the preferred choice for serving the
underserved, nurturing talent, and empowering people. Over the decades, the
company has achieved significant success by creating transparency and a strong sense
of belonging. Our customer loyalty is a testimony to our journey.

Our Core Value

Operational efficiency, truthfulness and a robust emphasis on catering to the needs of

the common man by providing him with high quality and cost-effective products &
services are the values driving Shriram Finance. These core values are deep-rooted
within the organization and have been firmly adhered to over the years.
 CHAPTER – 02

COMPANY PROFILE

2.1 Background

Company Profile

Company : Shriram finance

Type : Private

Founder : R. Thyagarajan

Founded : 1974

Industry : financial services sector

Address : SHRIRAM FINANCE CO LTD

No 29/A 1st floor K H Road,

Bangalore -560020

Products : Vehicle Loans, personal loan, business loan,

Gold loan, fixed deposit, insurance products,

other financial services

Website Link : https://www.shriramfinance.in/

www.shriramcity.in

Presence:

Regional Head Offices:

Delhi : 3381/7 Block, 2 Floor, Cristian Colony, Desh Bandhu Gupta Road, Karol
Bagh, New Delhi – 110005

Nagpur: Shriyash Heights, Block # 501 5th Floor 95 East Height Court Road,
Ramdaspeth, Nagpur – 440010
Pune: 107, 1st Floor, Ajinkyatara Building Beside Hotel Sawai Ganesh Mala Sinhgad
Road, Parvati, Pune – 411030

Secunderabad: 3rd Floor, Maspack House No. 12-12-1241, Street No.8, Beside Naaz
Hotel, Tarnaka, Secunderabad – 500003

Bhilai: 1st Floor, Sheela Kunj, Near HDFC bank, Aashish Nagar, Talkies Road, Risali,
Bhilai, Dist. Durng – 490006 Chhattisgarh

Registered Office:

123, Angappa Naicken Street, Chennai – 60001

SHRIRAM GROUP

Around 2.10 Crore Customers

Around 1,90,000 Business Associates

More than 64,000 Employees

More than 3,200 Branches

Over Rs.1,50,000 Crore - assets under management

2.2 Vision, Mission and Objectives

Vision:

 Becoming a leading financial services provider in the region or country.

Offering innovative and customer-centric financial solutions. Contributing to
the economic growth and well-being of the communities it serves.

 Build Human Capital; by quality recruitment, training, activaton and retension

of employees and Agents.
 Develop Advised based sales model through learning & development and
Enhance productivity through Input Management.
 Engage & develop enduring relationship with our customers through trust and
high quality Customer Service & Technology.
 To be the country’s most preferred Financial Services Destination, delivering
delightful customer experience through empowered employees

Mission:

 Providing accessible and affordable financial products and services to

individuals and businesses.
 Maintaining high ethical standards and transparency in all operations. Building
long-lasting relationships with customers and stakeholders.
 Helping create wealth. Empowering people through prosperity.
Objectives:

 Increasing the customer base by a certain percentage over the next five
years.
 Expanding the range of financial products offered, such as loans,
insurance, or investment options.
 Superior Customer Acquisition, Engagement & Retention in each of our
business as competition increases for unbanked/underserved Customer
segment
 Simplified structure creating focused businesses of scale across – Credit,
Life Insurance and Non-Life Insurance
 Renewed Growth focus optimizing centralized customer database for
lending combined with SuperApp initiatives
 Counter cyclical & complementary nature of products to help manage risks
better Improved profitability for our stakeholders with improved risk-
return profile
 Leveraging Depth of leadership across entities
 Attain Leadership position in NBFC space with an INR 1.5 tn AUM and
the merged entity becomes the largest retail finance NBFC in the country
 2.3Work flow model

Shriram Finance Co Ltd

Customer Inquiry and Application Document Verification

Credit Analysis Approval or Rejection

Loan Agreement and Documentation Disbursement of Funds

Repayment Customer Service

Collections Reporting and Analytics

2.4 Industry profile

Shriram Finance is a leading non-banking financial institution based in India,

specializing in providing various financial products and services. Established in 1974
as a part of the Shriram Group, the company has grown to become one of the most
prominent players in the Indian financial sector.

Core Business Areas:

1. Retail Loans: Shriram Finance provides loans to customers for various

purposes, including vehicle financing (two-wheelers, commercial vehicles,
and passenger cars), personal loans, and small business loans

2. Affordable Housing Finance: The Company also offers loans for

affordable housing, aiming to assist individuals and families in realizing their
dream of owning a home. This segment has gained significant traction due to
the increasing demand for housing in India.

3. Gold Loans: Shriram Finance extends gold loans, leveraging the value of
customers' gold assets to provide them with short-term financial support. Gold
loans are popular among individuals who need quick access to funds without a
lengthy approval process.

4. Microfinance: Shriram Finance's microfinance services target the

economically weaker sections of society, providing them with small loans to
support various income-generating activities.
2.5 Product and service Profile

Fixed Deposit: STFC Shriram Unnati

 Available only with Shriram Transport Finance Co. Ltd.

 STFC:Rated “FAAA/Negative” by CRISIL indicating high degree of
safety & “MAA+stable” by ICRA indicating high credit quality.
 Available with tenure of 12, 24, 36, 48 & 60 months.
 Available on Monthly, Quarterly. Half Yearly, Yearly & Cumulative
interest frequency.
 Interest payment through NEFT.
 Minimum application amount Rs.5,000 for cumulative & Rs.10,000 for
non-cumulative & in multiples of Rs.1 thereafter liquidity available after 3
months of investment, by way of loan or foreclosure.
2.6 SUBSIDIARY COMPANY OF STFC LTD.

1. SHRIRAM CITY UNION FINANCE LIMITED

 Consumer durable finance (Two wheelers, consumer goods, Trade
finance & Jewel loan)
 Operates in over 700 Locations.

2. CHIT FUND COMPANIES

 SHRIRAM CHITS (TAMILNADU) (P) LTD.
 SHRIRAM CHITS (KARNATAKA) (P) LTD.
 SHRIRAM CHITS (P) LTD – OPERATING IN A.P
 SHRIRAM CHITS (MAHARASHTRA) LTD.

3. SHRIRAM LIFE INSURANCE CO.LTD.

 Equity participation with SANLAM
 HEAD OFFICE – HYDERABAD.

4. SHRIRAM GENERAL INSURANCE CO.LTD.

 Equity participation with SANLAM
 HEAD OFFICE – JAIPUR.

5. SHRIRAM FORTUNE SOLUTIONS LTD.

 Marketing arm of the Group.
 Group Companies product distribution

6. SHRIRAM VALUE SERVICES (P) LTD.

 Recruitment & Training
 IT – Support to group Companies
 Other support services to Group Companies and others
7. ENGINEERING
 SHRIRAM EPC LTD – Engineering procurement & Construction,
project Management Service, Wind Turbine Generator Business,
Water & waste management, Cooling Towers etc.
 Operates in 16 States.
 Also, in Overseas – Zambia, France 7 Iran.

8. AUTO COMPONENTS MANUFACTURING

 HITECH ARAI LTD
 DOMESTIC & EXPORT
9. EXPORTS
 SHRIRAM EXPORTS (P) LTD
 Exports of Granites, Wood Products & Consumer Items

10. PHARMACEUTICALS
 MEDISPAN LTD.

11. STOCK BROKING

 INSIGHT SHARE BROKERS (P) LTD
 A Member of NSE/BSE
 150 Designated Branches
 Online Trading Facilitated
12. PROPERTY DEVELOPMENT
 SHRIRAM PROPERTIES LTD
 Civil Construction
 Flat Promotion (Residential & Commercial)

13. SHRIRAM FOUNDATION

 Ashram – Supports 150 Children – Age 2-14
 4 Schools Free Education for 3000 Students
 Women Empowerment – through SHG
 Benefiting one Lakh Women in around 700 Villages
2.7 Achievements and awards:

 Best Non-Banking Financial Company (NBFC)

 Corporate Governance Award
 Excellence in Rural Lending
 Innovative Financial Product Awards
 Sustainability and CSR Initiatives
 Customer Service Excellence
2.8 Future Plans

Shriram Finance wants to increase the number to over ₹75,000 crore by 2030,
plans typically revolve around expanding its services, embracing technology, and
ensuring financial sustainability. They aim to diversify product offerings to cater
to evolving customer needs, possibly venturing into digital banking and fintech
solutions. Expanding geographic reach, particularly in emerging markets helps tap
into new customer segments. Risk management remains paramount to maintain
asset quality. Sustainability and ESG initiatives may become integral, aligning
with global trends. Collaboration with fintech startups and investment in
cybersecurity are essential to adapt to the changing financial landscape.
Ultimately, the company seeks to balance growth, innovation, and risk
management to thrive in the evolving finance industry.
 CHAPTER – 3

MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE

MODEL:
3.1. MCKENSY’S 7S FRAMEWORK

Strategy
Shriram Transport needs to build a balance between short run cost savings and
protecting its core competitive advantage. Customers perceive Shriram Transport
products and services to deliver ‘value for money’ proposition plus a bit extra. In its
zest to gain more market share through competing on prices, Shriram Transport
should avoid cutting costs that can result in inferior product and service delivery.
Structure
The pandemic has questioned the current structure and supply chain management of
the company. To be more resilient organization and prepare itself for future disruption
of similar magnitudes Shriram Transport should focus on – diversifying suppliers
geographically so that climate related, geopolitical, and other disruptions don’t impact
Reduce the dependence on China – As the trade war between US and China is getting
aggressive, it should reduce its dependence on supply chain emerging out of China.
This will help the organization to diversify risks, avoid regulatory problems etc.To
achieve the above two goals – Shriram Transport needs to fine tune its organization
structure. It needs to have smaller teams, easy reporting to the headquarters, and
enabling teams to take decisions based on real time developments.

Systems

Shriram Transport needs to focus on the following areas – Improve internal processes,
such as risk management, Customer Relationship Management (CRM), web app
optimization, and data visualization across the organization.
Shriram Transport needs to put in place robust system for “work from home”
employees so that there can be greater interaction among the employees both online
and in physical environment. It will not only improve productivity but also increase
the data security and cyber security.

Staff

Some of the steps Shriram Transport can take in to improve the human resources are –
Recruitment and remote onboarding – Because of the pandemic, a lot of employees
are working from remote locations. To make the environment more inclusive for the
new employees, Shriram Transport should build system for remote onboarding such
as – catalog of short videos, small groups interaction, technical demonstrations.Open
chats for the people to approach people at various levels in the hierarchy. It will not
only help the top management to directly interact with the people below but also help
in building an open and transparent culture.
Skills

Shriram Transport can build a structured training and development program for
people working from remote locations.Shriram Transport can hire fresh talent as more
and more people are leaving their existing jobs because they are not challenging them
enough.

Style

The leadership styles required in the physical location and in remote scenario are
completely different. In a physical environment manager can stop by a chat, provide
inputs and go through the work. But in the remote locations employees have to work
in far more isolated environment. To improve the workflow – leaders should pursue
collaborative and inclusive form of leadership. Leaders should build smaller teams as
part of larger teams.

Shared Values

The organization has built a successful business model based on its core values, vision
and mission. It doesn’t have to change much in the shared values segment. One area
where it can focus more is – sustainability. Investors are putting a lot of stress on
Environmental, Societal, and Governance issues, so it can bring more transparency by
using the Triple Bottom Line concept in its ESG and financial reporting
3.2. PORTER’S FIVE FORCE MODEL:

Threats of new entrants

Threat of new entrants reflects how new market players impose threats to the existing
market players. If the industry will be profitable and barriers to enter the industry will
be low, it will attract more players and hence, the threat of new entrants. will be high.

Threat of Substitute Products

The availability of substitute products or services makes the competitive environment
challenging for Shriram Transport Finance and other existing players. High substitute
threat shows that customers can use alternative products/services from other industries
to meet their needs. Various factors determine the intensity of this threat for Shriram
Transport Finance

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Rivalry among existing firms

The Rivalry among existing firms shows the number of competitors that give tough
competition to the Shriram Transport Finance High rivalry shows Shriram Transport
Finance can face strong pressure from the rival firms, which can limit each other’s
growth potential. Profitability in such industries is low as firms adopt aggressive
targeting and pricing strategies against each other.

Bargaining Power of Suppliers

Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted
by suppliers on business organisations by adopting different tactics like reducing the
product availability, reducing the quality or increasing the prices. When suppliers
have strong bargaining power, it costs the buyers- (business organisations). Moreover,
high supplier bargaining power can increase the competition in the industry and lower
the profit and growth potential for Shriram Transport Finance Similarly, weak
supplier power can make the industry more attractive due to high profitability and
growth potential.

Bargaining Power of Buyers

Bargaining power of buyers indicates the pressure that customers exert on the
business organisations to get high quality products at affordable prices with excellent
customer service. This force directly influences the Shriram Transport Finance’s
ability to accomplish the business objectives. Strong bargaining power lowers
profitability and makes the industry more competitive. Whereas, when buyer power is
weak, it makes the industry less competitive and increase the profitability and growth
opportunities for Shriram Transport Finance

References:
1. SHRIRAM FINANCE CO LTD https://www.shriramfinance.in/

CHAPTER – 4

SWOT ANALYSIS:
STRENGTH:

Strong Customer Base: Shriram Finance had a robust and diversified customer base,
including individuals, small and medium-sized enterprises (SMEs), and commercial
vehicle operators

Expertise in Commercial Vehicle Financing: The company specialized in

commercial vehicle financing, which was a significant part of its business.

Wide Network: Shriram Finance had an extensive network of branches and customer
touchpoints across India

Strong Brand and Trust: The Shriram Group, to which Shriram Finance belongs,
had built a strong brand known for trust and reliability.

Customized Financial Products: The company offered a range of financial products

tailored to the needs of its customers, including vehicle loans, personal loans, and
insurance products.

Asset Quality: Shriram Finance historically maintained a good track record in

managing its loan portfolio and addressing non-performing assets (NPAs).

Experienced Management: The company had an experienced management team

with a deep understanding of the financial sector and the specific challenges of the
markets it served.

Customer-Centric Approach: Shriram Finance was known for its customer-centric

approach, focusing on providing personalized services and understanding the unique
needs of its customers.

Rural and Semi-Urban Focus: The company's strong presence in rural and semi-
urban areas allowed it to tap into underserved markets and contribute to financial
inclusion.

Sustainable Practices: Shriram Finance had taken steps to incorporate sustainability

and environmental, social, and governance (ESG)

WEAKNESS:
Dependency on Commercial Vehicle Financing: Shriram Finance's heavy reliance
on commercial vehicle financing made it vulnerable to economic downturns and
fluctuations in the commercial vehicle industry.

Credit Risk: Like all lending institutions, Shriram Finance was exposed to credit risk,
which included the risk of loan defaults by borrowers, leading to non-performing
assets (NPAs).

Interest Rate Sensitivity: The company was sensitive to changes in interest rates,
which could impact its borrowing costs and profit margins.

Regulatory Environment: The financial sector in India is subject to a complex

regulatory environment, and changes in regulations could affect the company's
operations, compliance costs, and product offerings.

Competition: The financial industry in India is highly competitive, with many players
offering similar services. Intense competition can put pressure on interest rates and
profit margins.

Asset Quality and NPAs: Managing the quality of its loan portfolio and addressing
NPAs was a continuous challenge for the company.

Market Volatility: Shriram Finance's performance could be affected by market

volatility, especially given its exposure to commercial vehicles and the broader
economic environment.

Dependence on Wholesale Borrowings: The company's funding was reliant on

wholesale borrowings, and fluctuations in borrowing costs or market conditions could
impact its cost of funds.

Operational Efficiency: Ensuring efficient operations across its extensive branch

network while maintaining customer service standards could be a challenge.

Cybersecurity Risks: As with any financial institution, the company faced

cybersecurity risks, including the threat of data breaches and fraud.

OPPORTUNITIES:
Expansion into New Geographies: Exploring opportunities to expand its operations
into new regions or states within India,

Diversification of Financial Products: Expanding its product portfolio to include a

wider range of financial products and services, such as wealth management, asset
management, or digital banking.

Transformation: Embracing digital technologies and fintech solutions to enhance

customer experiences, streamline operations, and provide digital banking services.

Rural and Agricultural Finance: Further strengthening its presence in rural and
agricultural finance, given India's predominantly agrarian economy and the
government's focus on rural development.

Sustainable Finance: Exploring opportunities in sustainable finance and ESG

(Environmental, Social, and Governance) investing to align with global trends and
meet the increasing demand for sustainable financial products.

Partnerships and Collaborations: Forging strategic partnerships with other financial

institutions, technology companies

Microfinance and Small Business Loans: Targeting microfinance and small

business lending to support the growth of small enterprises and entrepreneurs.

Asset Quality Enhancement: Implementing robust risk management practices to

maintain strong asset quality and minimize non-performing assets (NPAs).

Customer Engagement: Leveraging data analytics and customer insights to enhance

customer engagement and tailor financial products to customer needs.

Compliance and Regulatory Changes: Staying abreast of regulatory changes and

proactively aligning with them to ensure compliance and avoid potential risks.

THREATS:
Economic Downturn: Economic downturns, recessions, or economic instability can
lead to reduced economic activity, increased unemployment, and a higher risk of
default among borrowers, impacting the company's asset quality.

Interest Rate Fluctuations: Changes in interest rates can affect the cost of funds for
Shriram Finance and impact its net interest margins.

Regulatory Changes: Evolving and changing regulatory requirements in the financial

industry can impact operations, compliance costs, and product offerings.

Competition: The financial sector is highly competitive, and the company faces
competition from banks, other non-banking financial companies (NBFCs)

Credit Risk: Managing credit risk is a fundamental challenge for any lending
institution. Shriram Finance may face challenges related to borrower creditworthiness
and non-performing assets (NPAs).

Market Volatility: Financial market volatility can impact the value of investments
and financial assets held by the company, affecting its financial performance.

Technological Disruption: Rapid advancements in technology and changing

customer preferences may require significant investments in digital infrastructure and
services to remain competitive.

Operational Risks: Any disruptions to operations, such as IT system failures,

cyberattacks, or natural disasters, can pose a threat to the company's business
continuity.

Liquidity Risk: Ensuring adequate liquidity to meet financial obligations is crucial.

Macroeconomic Factors: Factors like inflation, exchange rate fluctuations, and

geopolitical events can have a significant impact on the financial industry and Shriram
Finance's operations
 CHAPTER 5

Analysis of financial statements

BALANCE
SHEET OF
SHRIRAM 23-Mar 22-Mar 21-Mar 20-Mar 19-Mar
FINANCE (in
Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES
AND
LIABILITIES
SHAREHOLDE
R'S FUNDS
Equity Share
374.43 270.52 253.06 226.88 226.9
Capital
TOTAL
SHARE 374.43 270.52 253.06 226.88 226.9
CAPITAL
Reserves and 42,737.3 25,661.6 21,315.3 17,778.2 15,609.3
Surplus 7 7 1 8 8
TOTAL
42,737.3 25,661.6 21,315.3 17,778.2 15,609.3
RESERVES
7 7 1 8 8
AND SURPLUS
TOTAL
43,306.6 25,932.1 21,568.3 18,005.1 15,836.2
SHAREHOLDE
4 9 7 6 8
RS FUNDS
NON-
CURRENT
LIABILITIES
Long Term 84,316.2 67,819.7 60,915.0 51,897.1 50,725.1
Borrowings 7 8 4 5 0
Deferred Tax
0 0 0 0 0
Liabilities [Net]
Other Long-
360.64 161.24 201.28 185.3 172.46
Term Liabilities
Long Term
211.48 138.18 142.54 146.33 133.26
Provisions
TOTAL NON-
84,888.3 68,119.2 61,258.8 52,228.7 51,030.8
CURRENT
9 0 6 8 2
LIABILITIES
CURRENT
LIABILITIES
 Short Term 73,590.0 46,676.9 45,281.3 42,474.6 37,189.3
Borrowings 2 3 7 0 0
Trade Payables 294.69 168.7 256.42 144.97 136.18
Other Current
1,584.12 1,209.07 1,313.84 1,275.13 1,099.90
Liabilities
Short Term
0 0 0 0 0
Provisions
TOTAL
75,468.8 48,054.7 46,851.6 43,894.7 38,425.3
CURRENT
3 0 3 0 8
LIABILITIES
TOTAL
2,03,663. 1,42,106. 1,29,678. 1,14,128. 1,05,292.
CAPITAL AND
86 09 86 64 48
LIABILITIES
ASSETS
NON-
CURRENT
ASSETS
Tangible Assets 699.7 413.08 432.96 484.17 143.46
Intangible Assets 2,624.38 3.04 2.39 2.67 1.97
Capital Work-In-
0 0 0 0 0
Progress
Other Assets 2.62 1.97 2 2.03 2.06
FIXED
3,392.78 418.09 437.35 488.87 147.49
ASSETS
Non-Current
0 0 0 0 0
Investments
Deferred Tax
1,743.92 869.38 639.14 62.5 75.7
Assets [Net]
Long Term
Loans and 0 0 0 0 0
Advances
Other Non-
1,141.48 538.28 382.57 418.67 250.24
Current Assets
TOTAL NON-
CURRENT 6,278.18 1,825.75 1,459.06 970.04 473.43
ASSETS
CURRENT
ASSETS
Current
8,565.06 6,809.16 3,197.85 2,798.48 3,999.07
Investments
Inventories 0 0 0 0 0
Trade
277.12 198.02 58.82 16.14 28.42
Receivables
Cash And Cash 15,817.4 16,355.1 16,441.8
7,314.92 3,981.47
Equivalents 1 6 2
Short Term 1,71,984. 1,16,665. 1,08,303. 1,02,231. 96,751.4
 Loans and
58 15 04 63 9
Advances
OtherCurrentAss
741.51 252.85 218.27 797.43 58.6
ets
TOTAL
1,97,385. 1,40,280. 1,28,219. 1,13,158. 1,04,819.
CURRENT
68 34 80 60 05
ASSETS
TOTAL 2,03,663. 1,42,106. 1,29,678. 1,14,128. 1,05,292.
ASSETS 86 09 86 64 48
OTHER
ADDITIONAL
INFORMATIO
N
CONTINGENT
LIABILITIES,
COMMITMEN
TS
Contingent
2,507.74 2,377.67 2,384.45 897.86 878.78
Liabilities
CIF VALUE
OF IMPORTS
Raw Materials 0 0 0 0 0
Stores, Spares
0 0 0 0 0
And Loose Tools
Trade/Other
0 0 0 0 0
Goods
Capital Goods 0 0 0 0 0
EXPENDITUR
E IN FOREIGN
EXCHANGE
Expenditure In
109.21 36.63 23.29 148.09 68.39
Foreign Currency
REMITTANCE
S IN FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance In -- -- -- -- --
Foreign Currency
EARNINGS IN
FOREIGN
EXCHANGE
FOB Value Of
-- -- -- -- --
Goods
Other Earnings 1.17 -- -- -- --
 BONUS
DETAILS

Bonus Equity
-- -- -- -- --
Share Capital
NON-
CURRENT
INVESTMENT
S
Non-Current
Investments
-- -- -- -- --
Quoted Market
Value
Non-Current
Investments
-- -- -- -- --
Unquoted Book
Value
CURRENT
INVESTMENT
S
Current
Investments
-- -- -- -- --
Quoted Market
Value
Current
Investments
8,565.06 6,809.16 3,197.85 2,798.48 3,999.07
Unquoted Book
Value
 5.1 CURRENT RATIO
Current Ratio = Current Assets
Current Liabilities
Table No.5.3: - Calculation of Current Ratio

Current
Year Current assets Ratio %
liabilities
2019-20 599.23 622.42 0.96
2020-21 722.74 712.35 1.01
2022-22 554.18 651.36 0.94
2022-23 954.54 1032.56 0.96
Chart no 5.1: - Current Ratio

Current Ratio
1200
1000
800
600
400
200
0
2019-20 2020-21 2022-22 2022-23

Current assets Current liabilities Ratio %

Interpretation: The ideal norm is 2:1; which means that every one rupee of
current liability is approximately covered by Two rupees of current assets
Analysis: Current Ratio above 2 indicates that the company is not utilizing
the assets properly and less than means they are taking high risk. The
company is having current ratio around 1 for only one year and less in the
other two years indicating that the company is not meeting the ideal norm
as required.

5.2 GROSS PROFIT RATIO (GPR)

Table no 5.2: - Calculation of Gross Profit Ratio

Gross Profit Net Sales Ratios

Years
(₹in Crores) (₹ in Crores) (Percentage)
2019-20 363.19 2,038.08 17.82
2020-21 156.18 1,849.66 8.44
2021-22 542.69 3,614.97 15.01
2022-23 726.36 3961.89 17.06

Chart no 5.2: Gross Profit Ratio

Gross Profit Ratio

4000
3500
3000
2500
2000
1500
1000
500
0
2019-20 2020-21 2021-22 2022-23

Gross Profit ( ₹in Crores) Net Sales ( ₹ in Crores) Ratios (Percentage)

Interpretation: This ratio helps measure the company’s efficiency to arrive

at a profit after the production and sales process. The company aims to
generate a higher gross profit margin. A higher ratio indicates that the
company is producing more efficiently.

Analysis: In the above Figure it can be seen that the firm has had a downfall
in its gross profit ratio in the 2nd year (F.Y 2020-21) compared to the F.Y
2019-20, which indicates that the company is not producing efficiently. But
in the 3rd year the ratio has almost doubled indicating the company’s
efficiency to meet required production with low costs.

5.3 NET PROFIT RATIO (NPR)

Table No 5.5: Calculation of Net Profit Ratio

Net Profit Net Sales Ratios

Years
(₹ in Crores) (₹ in Crores) (percentage)
2019-20 302.11 2,038.08 14.82
2020-21 112.37 1,849.66 6.08
2021-22 406.1 3,614.97 11.23
2022-23 513.62 3698.87 12.59

Net Profit Ratio

4000
3500
3000
2500
2000
1500
1000
500
0
2019-20 2020-21 2021-22 2022-23

Net Profit (₹ in Crores) Net Sales ( ₹ in Crores) Ratios (percentage)

Chart no 5.3: Net Profit Ratio

Interpretation: Calculating net profit ratios helps businesses determine

if their ongoing business practices are helping them generate extra
revenue against their investment in production.

Analysis: The firm has faced a decline in its net profit ratio, but it can be
seen that it has gradually increased at a substantial rate. While in the 2nd
year the decline of nearly 60%, but it can be seen that it has been retained
by 50% in the post covid period.
5.4 FIXED ASSET TURNOVER RATIO

5.4 Table No 5.6: Calculation of Fixed Assets Turnover Ratio

Years Net Sales Net Fixed Assets Ratios

(₹ in Crores) (₹ in Crores) (percentage)

2019-20 2,038.08 852.01 2.4

2020-21 1,849.66 1,010.31 1.83
2021-22 3,614.97 1,158.72 3.12
2022-23 3956.45 4250.23 13.59

fixed turn over

4,500.00
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
2019-20 2020-21 2021-22 2022-23

Net Sales ( ₹ in Crores) Net Fixed Assets ( ₹ in Crores) Ratios (percentage)

Chart No 5.4: Fixed Asset Turnover Ratio

Interpretation: What constitutes a good fixed asset turnover ratio is

difficult to prescribe. There is no precise percentage or range that can be
used to establish if a corporation is effective at earning revenue from such
assets.

Analysis: The company has had a substantial growth in its previous year
comparing to the performance in the other two years a s shown in Figure. It
suggests that fixed asset management is more efficient, resulting in higher
returns on asset investments. A high turnover suggests that assets are being
used effectively.

5.5 OPERATING RATIO

Table No 5.7: Calculation of Operating ratio

Operating Cost Net Sales Ratios

Years
(₹ in
(₹ in Crores) (percentage)
Crores)
2019-20 422.42 2,038.08 10.91
2020-21 512.38 1,849.66 16.88
2021-22 651.35 3,614.97 15.25
2022-23 712.85 3,986.23 18.59

Operating Ratio
4000
3500
3000
2500
2000
1500
1000
500
0
2019-20 2020-21 2021-22 2022-23

Operating Cost ( ₹ in Crores) Net Sales ( ₹ in Crores) Ratios (percentage)

Chart No 5.5: Operating Ratio

Interpretation: A higher ratio would indicate that expenses are more than
the company’s ability to generate sufficient revenue and may be considered
inefficient. Similarly, a relatively low ratio would be considered a good sign
as the company’s expenses are less than of its revenue.

Analysis: While the increase in the operating cost and net sales can be seen
from 2019 to 2021, the increase in the operating ratio is 60% in 2020 from
2019, but had seen a downfall of nearly 10% in 2021
 CHAPTER 6

LEARNING EXPERIENCE

EXPERIENCE IN ORGANISATION:

The primary objective of an internship is to gather real life working experience and
put their theoretical knowledge in practice. This was my 1 st real experience to work in
a Shriram Finance Company Ltd. I was quite nervous about it. During in 4 weeks of
training I have developed a lot of confidence and courage in this industry
After going through this internship program lot of exposure to the overall working
environment of the organization and got to know about ‘MANAGEMENT SKILLS’,
how to counter the problem, and how to deal with different cadre of people.
The experience brought out my strength and also the areas I needed makeup. It added
more confidence to my professional approach built a stronger positive attitude and
taught me how to work in a team as a player.
In fact, the main objective of this training is to help intern (myself) to adapt to
different work conditions, be flexible and creative while working in the organization.
I have tried to fulfill the same in my internship report.
Following are the learning experience that I have gained during my project.
The learning experience gained by me during the internship training was very much
practical oriented.
 Mostly all the concepts and theories, which I studied in the class, are
applicable
 practically.
 The overall study of the organization reveals that the company has been
 growing tremendously.
 1 had great time working internship, as it gives insights into the working
 environment of an organization.

BIBLIOGRAPHY

PRIMARY DATA SOURCE

 Annual Reports of Shriram Finance Company Ltd

SECONDARY DATA SOURCES

 BOOKS
 The Shriram Group Magazine (June 2023)

WEBLIOGRAPHY

https://www.shriramfinance.in/

www.shriramcity.in